difference between confirming activities, entering activity

[sappslearner]

what is the difference between confirming activities, entering activity allocation and settlement?

Each activity is associated with workcenter which in turn is associated with cost center hence is used to plan cost. There fore when ever u confirm and activity it is self understood as the cost is also allocated, right? so what is the need of second step?

[Youness]

If you have networks with activities and executing confirmations for labor and materials for example with transaction CN25 you don't need to use direct activity allocation.
Direct Activity allocation is for example to post costs linked to labor work directly to a Cost Object ( WBS Element, Internal Order, etc...)

Costs and revenues are collected in projects only temporarily. They are settled to one or more receivers as part of period-end processing.